REG - Nestle SA Nestle Holdings Inc - Half-year results 2025
24/07/2025 07:00
For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250724:nRSX3982Sa&default-theme=true
RNS Number : 3982S Nestle SA 24 July 2025
Nestlé Press Release
.......................................
Vevey/Switzerland, July 24, 2025
.......................................
[Ad hoc announcement pursuant to Art. 53 LR]
Half-year results 2025: Consistent execution, improving growth foundations
Laurent Freixe, Nestlé CEO commented: "We are executing our strategy to
accelerate performance and transform for the future. We are accelerating our
category growth and improving our market share, through better execution and
increased investment, funded through a relentless pursuit of efficiency.
These actions are already delivering results, with broad-based growth and a
robust profit performance in the first half. Where we are investing to
accelerate category growth, we are growing four times faster than the Group,
and our six innovation 'big bets' achieved sales of over CHF 200 million in
the first half. At the same time, we are addressing our 18 key underperforming
business cells, and the aggregate growth gap to market has improved by a
third. We are also taking decisive measures to strengthen our business in
Greater China and focus our Vitamins, Minerals and Supplements business on
winning premium brands.
We have maintained our guidance for 2025, while recognizing increased
macroeconomic risks and uncertainties. We remain confident that our actions to
drive performance and transformation will deliver our medium-term growth and
profit ambitions."
Results performance summary
In millions of CHF, unless stated H1-2025 H1-2024 Reported
change
- Real internal growth (RIG) 0.2% 0.1% 10 bps
- Pricing 2.7% 2.0% 70 bps
Organic growth 2.9% 2.1% 80 bps
Net acquisitions/(disposals) 0.0% -0.4% 40 bps
Foreign exchange movements -4.7% -4.4% -30 bps
Reported sales growth -1.8% -2.7% 90 bps
Sales 44,228 45,045 -1.8%
Underlying trading operating profit 7,287 7,841 -7.1%
Gross profit margin 46.6% 47.2% -60 bps
Underlying trading operating profit margin 16.5% 17.4% -90 bps
Net profit(1) 5,065 5,644 -10.3%
Basic EPS (CHF) 1.97 2.16 -9.0%
Underlying EPS (CHF) 2.27 2.40 -5.4%
Free cash flow 2,307 3,978 -42.0%
(1) Profit for the year attributable to shareholders of the parent
Financial highlights
· Broad-based sales growth
○ H1 organic sales growth (OG) of 2.9%, with real internal growth
(RIG) of 0.2% and pricing of 2.7%.
○ Q2 OG of 3.0%, with RIG of -0.4% and pricing of 3.3%. OG improved
compared to Q1 across most businesses.
○ Pricing actions taken through H1, with low elasticity in coffee and
higher short-term impact in confectionery.
○ Decline in Greater China impacting Group Q2 OG by 70 bps and RIG by
40 bps.
· Solid profit performance while stepping up investment
○ Underlying trading operating profit (UTOP) margin of 16.5%, impacted
by inflation in costs of goods sold, step-up in growth investments and
currency headwinds.
○ Net profit of CHF 5.1 billion, basic earnings per share (EPS) down
9.0% to CHF 1.97, free cash flow of CHF 2.3 billion.
Operational and strategic progress
· Investing in growth, with focused and consistent execution
delivering results
○ Marketing investment increased, with advertising and marketing
expenses reaching 8.6% of sales in the first half of 2025.
○ Where we are investing to accelerate category growth, we are growing
at four times the rate of overall group OG.
○ Rapid roll-out of six global innovation 'big bets' reaching combined
sales of over CHF 200 million in H1 2025.
○ In 18 key underperforming business cells, aggregate growth gap to
market improved by a third.
· Good progress with CHF 2.5 billion Fuel for Growth cost savings
program
○ On track to achieve target of CHF 0.7 billion savings in 2025, with
over CHF 150 million recognized in the P&L in H1 and an additional CHF 350
million already secured for H2.
· Taking steps to strengthen growth profile in Greater China and
Nestlé Health Science
○ Taking action in Greater China to improve performance; measures will
be a growth headwind for up to a year.
○ Focusing the Vitamins, Minerals and Supplements (VMS) business on
premium brands, launching strategic review of our mainstream and value
brands.
· Simplifying our organization and digitally transforming our
end-to-end processes
○ Leveraging Nestlé's scale, single enterprise resource planning
(ERP) core and data foundations, and expanding our AI platforms to support
decision-making, execution and efficiency.
2025 guidance
· 2025 guidance maintained, despite factoring in increased headwinds.
· Organic sales growth expected to improve compared to 2024,
strengthening over the year as we continue to deliver on our growth plans.
· UTOP margin expected to be at or above 16.0%, as we invest for
growth; includes negative impact from tariffs currently in place and current
foreign exchange rates.
· Despite heightened risks from continuing macroeconomic and consumer
uncertainties, we remain committed to investing for the medium term.
Follow today's event live
09:00 CEST Analyst & investor call - video webcast:
https://edge.media-server.com/mmc/go/Nestle2025Half-year-results/
Full details on our website:
https://www.nestle.com/media/mediaeventscalendar/allevents/2025-half-year-results
Press release links
2025 half-year results press release - French (pdf):
https://www.nestle.com/sites/default/files/2025-07/half-year-results-press-release-2025-fr.pdf
2025 half-year results press release - German (pdf):
https://www.nestle.com/sites/default/files/2025-07/half-year-results-press-release-2025-de.pdf
Reports published today
2025 half-year report (pdf):
https://www.nestle.com/sites/default/files/2025-07/half-year-report-2025-en.pdf
Other language versions available in Publications:
https://www.nestle.com/investors/publications
Contacts:
Media Christoph Meier Tel.: +41 21 924 2200 mediarelations@nestle.com (mailto:mediarelations@nestle.com)
Investors David Hancock Tel.: +41 21 924 3509 ir@nestle.com (mailto:ir@nestle.com)
Operational and strategic review
Growth and investment
In the first half of 2025, organic growth was 2.9%, with 2.8% in Q1 and 3.0%
in Q2. Pricing contribution increased to 2.7% in H1, as we took actions to
address input cost inflation in coffee
and cocoa-related categories. RIG was 0.2%, reflecting lower consumer demand
and the short-term impact of consumers and customers adjusting to price
increases. Sales declined in Greater China, negatively impacting the Group's
second-quarter OG and RIG by 70 bps and 40 bps, respectively.
We have stepped up our investments in our value proposition: unrivalled
product superiority, unbeatable value, unmissable visibility and unforgettable
brand communications. For example, we have made a step change in rigor on
consumer taste preference testing. Over the last three years, we have tested
less than a quarter of top-selling SKUs that account for approximately half of
group sales, whereas now we plan to test the remainder of them over the next
twelve months and take corrective action if we do not have taste preference.
We have also increased marketing investment, with advertising and marketing
expenses as a percentage of sales up to 8.6% in H1 2025 compared
to 8.1% in H1 2024.
The impact of these efforts can be seen in our progress on both improving our
market share trends and in accelerating our category growth. The aggregate
growth gap to market for our 18 key underperforming business cells has reduced
by a third, with most cells improving their relative performance. These
include coffee creamers US, soluble coffee Europe, frozen pizza US, Milo ASEAN
and biscuits Brazil.
Where we are investing to accelerate category growth, we are growing four
times faster than the Group. This includes platforms, such as ready-to-drink
(RTD) coffee and pet therapeutics as well as the rapid roll-out of our six
global innovation 'big bets': NAN Sinergity, Nescafé Espresso Concentrate,
Maggi air fryer range, chocobakery, Purina's gourmet pyramid-shaped cat food,
and Nescafé Dolce Gusto Neo. We have completed 65 product-market launches to
date - a step change in pace of rollout. In the first half of 2025, the six
'big bets' already achieved combined sales of over CHF 200 million, making
good progress towards our ambition to reach at least CHF 100 million in annual
sales in each big bet over the next three years.
Efficiency and productivity
Our Fuel for Growth program targets savings of CHF 0.7 billion in 2025,
scaling to CHF 2.5 billion by the end of 2027. In H1, over CHF 150 million of
savings were recognized in the P&L, and a further CHF 350 million savings
have already been secured for H2, putting us well on track to achieve our 2025
target. Examples of savings achieved so far include AI-powered procurement and
supplier management, spend consolidation and aggregation, and e-sourcing
expansion and automation. These Fuel for Growth savings will come in addition
to over CHF 1 billion per annum of ongoing efficiencies from existing
initiatives.
Expected phasing of Fuel for Growth cost savings program:
Achieved Expected Expected Expected
In CHF billion H1-2025 2025 2026 2027
2025 non-recurring savings 0.1 0.3
2025 recurring savings 0.05 0.4 0.4 0.4
2026 recurring savings 1.0 1.0
2027 recurring savings 0.9
Total in-period savings 0.15 0.7 1.4 2.3
Run-rate savings at end of 2027 2.5
Strengthening foundations
In Greater China, we are taking material steps to strengthen performance,
including changes in leadership. In recent years, we have grown the business
by expanding distribution. This model has become challenged by a weaker
consumer and the deflationary environment. To deliver sustainable growth, we
are now focusing on driving consumer demand by strengthening our value
proposition. It will take up to a year to return to sustainable growth.
In Vitamins, Minerals and Supplements (VMS), we have launched a strategic
review of our mainstream and value brands, including Nature's Bounty, Osteo
Bi-Flex, Puritan's Pride, and US private label, which may result in the
divestment of these brands. Our VMS business will focus on global premium
brands, such as Garden of Life, Solgar and Pure Encapsulations where our
capabilities in science, innovation and brand-building give us a distinct
competitive edge.
We are simplifying our organization and digitally transforming our end-to-end
processes, leveraging Nestlé's scale, single ERP core and enterprise data
foundations. This will allow us to run the business with greater agility and
precision, with connected data and technology to support decision-making,
execution and efficiency. Our current areas of focus are consumer engagement,
commercial investment decision-making and returns, procurement analytics and
connected operations.
Financial review
Sales
Total reported sales decreased by 1.8% to CHF 44.2 billion. This includes a
negative impact of 4.7% from foreign exchange, given the significant
strengthening of the Swiss franc during the period. Organic growth was 2.9%.
Pricing contribution was 2.7%, as we took action to address input cost
inflation in coffee and cocoa-related categories. RIG was 0.2%, reflecting
soft consumer demand and the short-term impact of consumers and customers
adjusting to price increases.
By category, confectionery and coffee were the largest organic growth
contributors, driven by pricing of 10.6% and 6.0%, respectively. Our focus in
these two categories is on smart pricing action to fully address input cost
increases where possible, while maintaining medium-term consumer penetration.
In coffee, elasticity effects have been limited, and RIG was slightly positive
and remained stable across the two quarters. Short-term elasticities in
confectionery have been more pronounced than in coffee, which is consistent
with historical trends. Outside confectionery and coffee, organic growth was
more modest, led by PetCare and water, while growth in food was negative in
the context of a category decline.
By geography, organic growth in developed markets was 1.8%, driven by RIG of
1.0% along with pricing of 0.8%. In emerging markets, organic growth was 4.5%,
with pricing of 5.6% and RIG of
-1.1%.
By channel, organic growth in retail sales was 2.6%. Organic growth of the
out-of-home channel was 5.8%. E-commerce sales grew organically by 12.3%,
reaching 20.2% of total Group sales.
Gross profit and operating profit
Gross profit was CHF 20.6 billion. The gross profit margin decreased by 60 bps
to 46.6%, primarily driven by the impact of higher coffee and cocoa prices on
cost of goods sold, which were not fully compensated by price increases.
Distribution expenses as a percentage of sales were 8.3%, slightly down versus
the prior year at 8.4%. Marketing and administration expenses as a percentage
of sales increased by 50 bps to 20.4%. This was driven by an increase in
advertising and marketing expenses as a percentage of sales, up 50 bps to
8.6% as we continue to step up growth investments; administration expenses as
a percentage of sales were flat at 11.8%. Research and development costs as a
percentage of sales were slightly down versus the prior year at 1.8%.
Underlying trading operating profit was CHF 7.3 billion, a decrease of 7.1%.
The underlying trading operating profit margin was 16.5%, a decrease of 90 bps
on a reported basis or 80 bps in constant currency.
Restructuring and net other trading items was CHF 0.4 billion in the first
half of both this year and the prior year. Trading operating profit decreased
by 6.9% to CHF 6.9 billion. The trading operating profit margin was 15.6%, a
decrease of 80 bps on a reported basis.
As % of sales H1-2025 H1-2024 Reported Constant
change
currency
change
Sales 100.0% 100.0% -
Cost of goods sold -53.4% -52.8% -60 bps
Gross profit margin 46.6% 47.2% -60 bps
Other revenue 0.4% 0.4% 0 bps
Distribution expenses -8.3% -8.4% 10 bps
Marketing and administration expenses -20.4% -19.9% -50 bps
Research and development costs -1.8% -1.9% 10 bps
Underlying trading operating profit margin 16.5% 17.4% -90 bps -80 bps
Other trading income 0.2% 0.1% 10 bps
Other trading expenses -1.1% -1.1% 0 bps
Trading operating profit margin 15.6% 16.4% -80 bps -70 bps
Other operating income 0.4% 0.5% -10 bps
Other operating expenses -0.6% -0.4% -20 bps
Operating profit margin 15.4% 16.5% -110 bps
Net financial expenses and income tax
Net financial expenses increased to CHF 759 million from CHF 744 million,
reflecting a higher level of average net debt. The average cost of net debt
was 2.5% compared to 2.6% in the first half of 2024.
The Group reported tax rate was 26.4%, compared to 25.0% in the prior year
period. The increase was due to one-off tax charges reported in 2025. The
underlying tax rate was 22.0%.
Net profit and earnings per share
Net profit decreased by 10.3% to CHF 5.1 billion. Basic earnings per share
decreased by 9.0% to CHF 1.97 driven by lower net profit, which was partially
offset by the impact of the share buyback program, which concluded in December
2024.
Cash flow
Cash generated from operations decreased to CHF 6.2 billion from CHF 8.1
billion in the first half of 2024. Free cash flow was CHF 2.3 billion compared
to CHF 4.0 billion in the same period last year, with the decrease primarily
due to lower EBITDA and a negative contribution from working capital
movements, partially offset by lower capex.
Net debt
Net debt was CHF 60.0 billion as at June 30, 2025, compared to CHF 56.0
billion as at December 31, 2024 and CHF 59.5 billion as at June 30, 2024. The
increase largely reflected cash outflows for the dividend payment of CHF 7.8
billion partially offset by a benefit from foreign exchange movements.
Acquisition of minority interests and JVs
During the first half of the year, we increased our ownership in two companies
as follow-ons from earlier acquisitions. In China, we acquired all the
outstanding minority interests of confectionery company Hsu Fu Chi, and in
Nestlé Health Science we further increased our majority stake in Orgain, a
leader in plant-based nutrition, where we had an option as part of the
original acquisition structure. In South Korea we took control of our Purina
business from the existing JV structure and integrated it into Nestlé South
Korea.
Operating segment review
Total Zone Zone Zone Nestlé Nespresso Nestlé Waters Other businesses
Group Americas AOA Europe Health & Premium Beverages
Science
Sales H1-2025 (CHF m) 44,228 16,954 10,442 8,467 3,225 3,172 1,821 147
Sales H1-2024 (CHF m) 45,045 17,821 10,591 8,342 3,239 3,096 1,810 146
Real internal growth (RIG) 0.2% -0.5% -0.3% -0.2% 3.3% 2.0% 2.3% 0.7%
Pricing 2.7% 2.7% 2.6% 3.7% 0.1% 3.8% 2.4% 2.5%
Organic growth 2.9% 2.1% 2.4% 3.5% 3.4% 5.8% 4.7% 3.2%
Net M&A 0.0% -0.1% -0.3% 0.2% -0.1% 0.4% 0.0% 0.0%
Foreign exchange -4.7% -6.9% -3.6% -2.2% -3.7% -3.7% -4.0% -2.3%
Reported sales growth -1.8% -4.9% -1.4% 1.5% -0.4% 2.4% 0.6% 0.8%
UTOP H1-2025 (CHF m) 7,287 3,429 2,246 1,456 504 695 170 -8
UTOP H1-2024 (CHF m) 7,841 3,807 2,366 1,569 433 667 168 -5
UTOP margin H1-2025 16.5% 20.2% 21.5% 17.2% 15.6% 21.9% 9.3% -5.5%
UTOP margin H1-2024 17.4% 21.4% 22.3% 18.8% 13.4% 21.5% 9.3% -2.9%
UTOP margin YoY -90 bps -120 bps -80 bps -160 bps +220 bps +40 bps flat -260 bps
Zone Americas
Zone Americas delivered resilient performance despite a challenging
macroeconomic environment and fragile consumer confidence. Growth was broad
based across all key markets, and performance was strong in the out-of-home
and e-commerce channels. In North America, organic growth and RIG were both
positive in Q1 and Q2, with improving market share trends in frozen foods and
coffee creamers. In Latin America, growth was pricing-led, with double-digit
increases in coffee and confectionery partially offset by negative RIG.
Segment performance summary
· Organic growth was 2.1%, with -0.5% RIG and 2.7% pricing.
· Reported sales growth was down 4.9% to CHF 17.0 billion,
including a -6.9% impact from foreign exchange movements.
· In North America, organic growth was 0.3%, with 0.6% RIG and
-0.3% pricing. In Latin America, organic growth was 5.5%, with -2.7% RIG and
8.3% pricing.
· By market, growth was led by Brazil, along with Argentina and
Venezuela (both with strong RIG), partially offset by the Central American and
Caribbean regions.
· Market share gains were achieved in portioned and soluble coffee
in North America and ready-to-drink beverages in Latin America. Market share
developments in frozen food and in coffee creamers continued to improve.
· UTOP margin decreased by -120 bps to 20.2% driven by input cost
inflation, increased consumer investment, and currency and tariff headwinds
that offset pricing and efficiencies.
Key organic sales growth drivers by product category
· Beverages (including coffee and coffee creamers) delivered high
single-digit broad-based growth, with strong pricing and positive RIG.
Nescafé was the key driver, reflecting its strong value proposition
especially for more stretched consumers, as well as good commercial execution.
· Confectionery grew double digit, led by Tollhouse in the US
(double-digit RIG and pricing) and Garoto in Brazil (double-digit pricing,
negative RIG), and supported by chocobakery expansion.
· Nestlé Professional grew at mid single-digit rate, with positive
contributions across most segments, particularly in Latin America.
· In PetCare, growth was positive, with solid performance in cat,
offset by weaker category dynamics impacting sales in mainstream dog brands
and snacks.
· Frozen food declined at a slower pace, with improved share trends
in Stouffer's and DiGiorno.
· Infant Nutrition recorded negative growth, with sales declines in
Gerber and Nido.
Zone Asia, Oceania and Africa
In Zone AOA, growth was broad based across markets, with the exception of
Greater China. Most regions delivered positive organic growth, with the
strongest contributions from Central & West Africa, the Philippines and
South Asia. In Greater China, sales declined in Q2, as we began to adjust our
business model to focus on driving consumer demand. By category, growth was
strongest in confectionery, led by RIG and market share gains while
implementing pricing actions. Growth was also strong in strategic focus areas
of on-the-go ready-to-drink coffee and PetCare in emerging markets.
Segment performance summary
· Organic growth was 2.4%, with -0.3% RIG and 2.6% pricing.
· Reported sales decreased by 1.4% to CHF 10.4 billion, impacted by
foreign exchange movements, which decreased sales by 3.6%.
· In Greater China, organic growth was -4.2%, with -1.5% RIG and
-2.7% pricing.
· In Zone AOA, excluding Greater China, organic growth was 4.3%,
with 0.1% RIG and 4.2% pricing.
· Key market share developments were gains in confectionery,
PetCare, and cocoa malt beverages and losses in coffee, Infant Nutrition, and
culinary.
· UTOP margin decreased by 80 bps to 21.5%, driven primarily by the
impact on cost of goods sold from inflation in coffee and confectionery.
Key organic sales growth drivers by product category
· Confectionery grew at a high single-digit rate, driven by
double-digit RIG for KitKat and Milo across all regions.
· Coffee posted low single-digit growth, led by pricing. The
largest growth contributor was Nescafé.
· Culinary delivered low single-digit growth, led by solid sales
momentum for Maggi, led by cooking aids and noodles.
· Nestlé Professional achieved mid single-digit growth, across
geographies and categories led by coffee products and beverage solutions as
well as confectionery.
· Infant Nutrition and dairy posted low single-digit growth, led by
NAN and Milo across most geographies.
· PetCare posted negative growth, with strong growth in emerging
markets, more than offset by category softness in developed markets.
Zone Europe
In Zone Europe, growth continued to be pricing-led, reflecting the
inflationary environment for coffee and confectionery. Even as pricing
increased through the half, RIG turned positive in Q2 after a decline in Q1,
supported by an improvement in coffee and positive RIG in PetCare. For the
Zone, growth was positive across most categories and markets, with market
share gains in PetCare and soluble coffee.
Segment performance summary
· Organic growth was 3.5%, with -0.2% RIG and 3.7% pricing.
· Reported sales increased by 1.5% to CHF 8.5 billion, and included
a -2.2% impact from foreign exchange movements.
· Across the Zone, growth was led by Türkiye, Iberia, Nordics and
France.
· Market share gains were achieved in PetCare and soluble coffee,
with losses in confectionery and food.
· UTOP margin decreased by 160 bps to 17.2%, driven by the impact
of inflation on cost of goods sold in coffee and confectionery, and by higher
marketing spend.
Key organic sales growth drivers by product category
· Coffee posted mid single-digit growth. RIG declined mid
single-digit in Q1, but recovered to flat in Q2, even as pricing accelerated
to double-digits. Organic growth was led by soluble coffee, supported by very
strong growth in RTD coffee.
· Confectionery posted mid single-digit growth, with KitKat and
Dessert the main growth drivers. Pricing was double-digit while RIG declined
mid single-digit.
· PetCare delivered low single-digit growth, led by Felix, Purina
ProPlan and Purina ONE. Growth was RIG driven and broad based across markets.
· Sales in Nestlé Professional grew at a high single-digit rate,
driven by beverage solutions.
· Infant Nutrition recorded flat growth, reflecting soft category
trends, with NAN contributing positively to growth.
· Food saw a decline in sales, impacted by a challenging customer
and competitive environment in some markets.
Nestlé Health Science
Organic growth slowed in Nestlé Health Science, following mixed performance
across business segments. In VMS, growth was impacted by the discontinuation
of some private label business and weaker performance in our mainstream
brands, particularly Puritan's Pride. In Active Nutrition, we had strong
growth momentum in Orgain. In Medical Nutrition, solid growth was driven by
pediatric products.
Segment performance summary
· Organic growth was 3.4%, with 3.3% RIG and 0.1% pricing.
· Reported sales decreased by 0.4% to CHF 3.2 billion, including a
negative foreign exchange impact of 3.7%.
· Market share was stable in both VMS and Medical Nutrition, with
losses in Active Nutrition.
· UTOP margin increased by 220 bps to 15.6%, driven by positive mix
effects.
Key organic sales growth drivers
· By geography, North America posted low single-digit growth, whilst
Europe and other regions delivered mid single-digit growth.
· VMS reported low single-digit growth, as sales momentum in premium
brands, particularly Pure Encapsulations and Solgar, was partially offset by
declines in mainstream and value brands and the discontinuation of some
private label activities.
· Active Nutrition posted low single-digit growth. Strong momentum
for Orgain was partially offset by a weaker performance from Vital Proteins.
· Medical Nutrition delivered high single-digit growth, led by
improved sales momentum for pediatric care products, including strong
double-digit growth in the allergy range as well as Compleat.
Nespresso
Nespresso delivered solid growth, led by accelerating pricing across products,
channels and geographies, along with positive RIG. Successful brand campaigns,
innovation and strong performance from limited edition launches supported
growth. Vertuo again delivered strong performance, particularly in North
America, while the environment in Western Europe remains competitive.
Segment performance summary
· Organic growth was 5.8%, with 2.0% RIG and 3.8% pricing.
· Reported sales increased by 2.4% to CHF 3.2 billion, including a
negative impact of 3.7% from foreign exchange movements.
· Market share continued to grow with momentum in North America and
Asia, with strong RIG-led growth supported by innovation. Western Europe
remains soft, with positive growth across many markets but continued strong
competitive pressure.
· UTOP margin was up 40 bps to 21.9%, driven by the timing benefit of
pricing versus input cost increases, as higher coffee prices flow through with
some time lag given the length of the supply chain.
Key organic sales growth drivers
· By geography, sales in North America posted a strong double-digit
rate. In Europe, growth was close to flat.
· By system, growth was driven by Vertuo, with strong sales growth
and positive momentum across almost all geographies. Sales for out-of-home
channels grew at a mid single-digit rate, led by the hotels, restaurants and
catering (horeca) sector and positive machine placements.
Nestlé Waters & Premium Beverages
Growth was broad based across markets and strengthened in the second quarter.
This was primarily driven by key growth platforms Maison Perrier and
Sanpellegrino and robust sales in out-of-home channels. We are progressing
with the strategic evaluation of the business.
Segment performance summary
· Organic growth was 4.7%, with 2.3% RIG and 2.4% pricing.
· Reported sales increased by 0.6% to CHF 1.8 billion, including a
negative impact from foreign exchange of 4.0%.
· Market share moved into positive territory, led by strong gains for
S.Pellegrino.
· UTOP margin was flat at 9.3%, as operational cost savings were
offset by increased investment in our premium beverages growth platform.
Key organic sales growth drivers
· By geography, Southern Europe and AOA posted high single-digit
growth, the Americas delivered mid single-digit growth and Northern Europe
recorded low single-digit growth.
· Growth was strong in premium beverages, supported by the geographic
expansion of Maison Perrier and the roll-out of new innovations under the
Sanpellegrino Ciao and Zero ranges.
· Within waters, we saw solid growth from S.Pellegrino and Acqua
Panna, with a weaker performance from Perrier due to the continued impact of
supply constraints.
Category performance
Total Powdered Water Milk products & ice cream Nutrition Prepared dishes & cooking aids Confec-tionery PetCare
Group
& liquid beverages & Health Science
Sales H1-2025 (CHF m) 44,228 12,308 1,611 4,830 7,237 5,051 3,962 9,229
Sales H1-2024 (CHF m) 45,045 12,041 1,621 5,189 7,637 5,260 3,845 9,452
Real internal growth (RIG) 0.2% 0.6% 0.9% 0.2% -0.8% -1.1% -2.1% 1.8%
Pricing 2.7% 5.8% 2.8% 0.9% 0.8% 0.2% 10.6% -0.5%
Organic growth 2.9% 6.4% 3.7% 1.1% 0.0% -0.9% 8.5% 1.3%
UTOP H1-2025 (CHF m) 7,287 2,350 156 1,078 1,500 935 436 2,037
UTOP H1-2024 (CHF m) 7,841 2,529 145 1,202 1,492 1,003 548 2,086
UTOP Margin H1-2025 16.5% 19.1% 9.7% 22.3% 20.7% 18.5% 11.0% 22.1%
UTOP Margin H1-2024 17.4% 21.0% 8.9% 23.2% 19.5% 19.1% 14.3% 22.1%
Powdered and liquid beverages was the largest category growth contributor,
with 6.4% organic growth. This was pricing led, as we took actions to address
input cost inflation in coffee. RIG remained positive.
Confectionery organic growth of 8.5% was pricing driven and led by KitKat and
continued momentum in chocobakery. RIG was negative, reflecting some
short-term elasticity response to the price increases.
PetCare delivered 1.3% organic growth, reflecting a general slowdown in
category growth. Growth was led by our billionaire brands, including Purina
Pro Plan, Felix, Purina ONE and Tidy Cats. Our super-premium science brands
continue to show strong momentum.
Water organic growth was 3.7%, led by strong growth for the Maison Perrier
range.
Milk products and Ice cream posted 1.1% growth, led by dairy culinary brands
Nestlé and La Lechera, with coffee creamers turning positive in Q2.
Nutrition and Health Science recorded flat growth. Within this, Nestlé Health
Science delivered low single-digit growth. Infant Nutrition posted negative
growth, as strong growth for NAN was more than offset by a sales decline in
Gerber.
Prepared dishes and cooking aids posted slightly negative growth. This was
driven by frozen food in North America, where growth improved but remains
negative, partially offset by growth in ambient culinary products, especially
Maggi.
Annex
Second quarter performance tables
Total Zone Zone Zone Nestlé Nespresso Nestlé Waters Other businesses
Group
Americas
AOA
Europe
Health
& Premium Beverages
Science
Sales Q2-2025 (CHF m) 21,627 8,315 4,903 4,114 1,632 1,577 1,012 74
Sales Q2-2024 (CHF m) 22,953 9,182 5,247 4,094 1,728 1,593 1,031 78
Real internal growth (RIG) -0.4% -1.2% -1.2% 0.2% 1.9% 1.4% 2.9% -2.1%
Pricing 3.3% 3.5% 2.9% 4.5% 0.8% 4.4% 2.7% 2.5%
Organic growth 3.0% 2.3% 1.7% 4.7% 2.7% 5.8% 5.6% 0.3%
Total Powdered Water Milk products & ice cream Nutrition Prepared dishes & cooking aids Confec- tionery PetCare
Group
& liquid beverages & Health Science
Sales Q2-2025 (CHF m) 21,627 6,184 889 2,288 3,580 2,391 1,770 4,525
Sales Q2-2024 (CHF m) 22,953 6,194 920 2,584 3,957 2,634 1,802 4,862
Real internal growth (RIG) -0.4% 0.7% 1.3% -0.3% -1.6% -2.5% -3.2% 1.1%
Pricing 3.3% 6.8% 3.0% 1.7% 1.3% 0.8% 11.3% -0.1%
Organic growth 3.0% 7.5% 4.3% 1.4% -0.4% -1.7% 8.1% 1.0%
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END IR USUVRVKUBURRRecent news on Nestle SA
See all newsREG - Stock Exch Notice - Admission to ISM - 30/07/2025
AnnouncementREG - Nestle SA Nestle Holdings Inc - Half-year results 2025
AnnouncementREG - Nestle SA Nestle Holdings Inc - Nestlé announces succession for Chair of the Board
AnnouncementREG - Stock Exch Notice - Admission to ISM - 02/06/2025
AnnouncementRCS - OMP - Nestlé and OMP Showcase Approach to Future-Ready
Announcement